Useful Tips For First Time Home Buyers
This is the peak season for real estate businesses in Canada. If you’re aiming to shop for a home, chances are spending more than what you originally set. If you are entertaining the idea of buying your first home, you’d likely to be overwhelmed with the experience. So, before you go on a shopping for your first home, make sure that you are prepared and equipped with knowledge.
Tips In Buying Your First Home
Before you head out for home shopping, here are some of the ways to ensure your within budget and be able to determine your long-term finances feasibly.
Know The Price Before Starting To Shop
The worst scenario is falling in love with a home and knowing that you can’t afford the price. So, before you start for shopping, it is must that you know the range of prices and the expected amount that you need to afford it.
Calculate The Affordability
You need to determine how much you can afford and on how much can you lend from your bank. This way, you will know if its within your set amount or target. Once you have determined the mortgage offer, you must calculate the affordability with a 2% higher estimate to anticipate possible price hike. By doing so, you can still afford you new home. Besides, in terms o fixed rate mortgage, you will possible be offered a much higher rate during renewal depending on the economic status.
Factor in All The Costs
There are other costs at stake when owning a home, which most first time home buyers underestimate. These are insurance premiums, utilities, as well as general maintenance. Most of these figures should can be divulged when scrutinizing sales agent. So, you might take these cost in consideration before jumping into conclusion.
Measure Your Commute
Another factors that you need to consider in buying your first home is the location. You might need to check if it will cost you a lot in terms of transportation. Perhaps, it can take you more hours to get to your work or to a grocery shop. These are just few of the things that you need to calculate and determine as this might imply additional expenses.
Forecast Your Life
In buying your first home, you must have forecast possibilities. This means may need to consider if it’s going to be a conducive space for living through out your lifetime. Perhaps, you’d want to have more kids and may decide to put out rooms for rent in Airbnb in the future. These are just a few of the consideration that you need to look into as this is going to be your crib for the rest of your life.
More Tips To Remember
- Know and understand what is a variable and fixed rate. A variable mortgage has a floating rate that may changes periodically. A fixed rate remains the same whether their is a price hike.
- Ensure a 20% down payment to shun expensive Canada Mortgage and Housing Corporation or CMHC insurance, which is necessary when buying any home with less down payment.
- Set aside money for your closing expenses. After the realtor fees, you might be spend approximately 1.5% to 4% of your buying price in terms of closing costs. These expenses includes: home inspection, legal fees, and land transfer taxes.
- This is such a huge buy that you’re making so be certain that this is what you wanted.
- Review you credit score and rating, to ensure that information are accurate and there’s no error on your report.
- Consult a mortgage experts. This way you can get guidance on the whereabouts in obtaining mortgage.
